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STAFF ORIGINATOR: MEETING DATE: TOPIC: VOTE REQUIRED: AGENDA ITEM 4C Linda Waite Smith, City Administrator October 28, 2002 Consider Resolution 02-165 Authorizing Expenditure of $26,411 from Capital Improvement Fund (401) to Pay for Mold Remediation in Early Childhood Center 3/5 BACKGROUND: In late August we became aware of mold in the Civic Complex. On September 9, the City Council authorized expenditures of $26,000 to install carbon monoxide detectors at several locations, a centralized electronic monitoring system that alerts us to problems and allows us to check those areas from one location, and a programming control override to help dehumidify air brought in from outside. The Institute for Environmental Assessment evaluated the damage to the building interior and obtained quotes from contractors qualified to perform decontamination. Cleanup began in the Early Childhood Center which had the most damage. We have received invoices totally $26,411 for these services. We will incur additional costs as the other two sections of the Civic Complex are decontaminated. We are requesting authorization to use $26,411 from the Capital Improvement Program Fund (401) to pay for cleaning up mold in the Early Childhood Center. The Finance Director has advised us to use the same fund for all expenses related to mold problems in order to simplify documentation as we seek reimbursement. We are currently gathering information to assist us in an insurance claim or legal action. OPTIONS: 1. Adopt Resolution 02-165 Authorizing $26,411 in Expenditures from the Capital Improvement Fund (401) for Remedial Measures to Address Mold in Civic Center Complex. 2. Decline to Adopt Resolution 02-165. 3. Return to staff for further review and/or action. RECOMMENDATION: 1. Option #1 J:\Iwaitesmith\finance\mold 10-28-02.doc